GT Posts Results

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Records net income of $22.9 million on revenues of $246.8 million.

By IGN Staff

GT Interactive announced its operating results for its third fiscal quarter, ending December 31st, 1998. It recorded net income of $22.9 million on revenues of $246.8 million, not including one-time charges related to its acquisitions of Reflections Interactive and SingleTrac Entertainment. With the charges, GT made $16.8 million on the quarter. This compared favorably to a loss of $42.5 million in the same period last year.

For the nine months ended December 31st, GT netted $26 million on revenues of $479.3 million, compared to $29.4 million in income on $437.3 million in revenues.

GT attributed its successes to Oddworld: Abe's Exoddus, Duke Nukem: Time to Kill, Deer Hunter II, and an edutainment title.

Despite the positive gains, GT's new chairman and CEO, Thomas Heymann, was displeased with the company's performance.

"While GT's net income has improved, our operating performance this year has been unsatisfactory," he said. "I am committed to taking decisive and significant action to return GT Interactive to acceptable levels of profitability and to build a foundation for consistent and profitable growth."

Heymann is about to embark on a two month fact-finding process throughout GT's operations.

"To that end, I will be using the next eight weeks to conduct a thorough assessment of our operations and re-evaluate our new release schedule," he said. "GT's fourth fiscal quarter will be a transitional period, as I make the appropriate revisions to our long-term business plan.

"We are committed to improving the company's financial performance by defining a clear business model and action plan to deliver these results,'' he said.